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Pampa Energia SA (NYSE:PAM)
Beneish M-Score
-4.48 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Pampa Energia SA has a M-score of -4.48 suggests that the company is not a manipulator.

PAM' s 10-Year Beneish M-Score Range
Min: -7.83   Max: 6.19
Current: -4.48

-7.83
6.19

During the past 10 years, the highest Beneish M-Score of Pampa Energia SA was 6.19. The lowest was -7.83. And the median was -2.89.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Pampa Energia SA for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.3895+0.528 * -1.7028+0.404 * 0.7962+0.892 * 1.07+0.115 * 1.143
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2965+4.679 * -0.1775-0.327 * 1.1441
=-4.48

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $242.6 Mil.
Revenue was 191.869585799 + 176.325443787 + 169.397278107 + 162.87147929 = $700.5 Mil.
Gross Profit was 5.69715976331 + -0.474792899408 + 13.4633136095 + -6.90378698225 = $11.8 Mil.
Total Current Assets was $528.7 Mil.
Total Assets was $1,823.7 Mil.
Property, Plant and Equipment(Net PPE) was $995.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $50.6 Mil.
Selling, General & Admin. Expense(SGA) was $165.6 Mil.
Total Current Liabilities was $760.3 Mil.
Long-Term Debt was $454.0 Mil.
Net Income was 11.3132544379 + 36.6498224852 + -46.1662721893 + -11.6637869822 = $-9.9 Mil.
Non Operating Income was 51.0688757396 + 11.3195266272 + -35.9217751479 + -32.2415384615 = $-5.8 Mil.
Cash Flow from Operations was 118.536094675 + 55.5132544379 + 59.1136094675 + 86.4917159763 = $319.7 Mil.
Accounts Receivable was $163.2 Mil.
Revenue was 168.95443787 + 134.77704142 + 164.757159763 + 186.164615385 = $654.7 Mil.
Gross Profit was -2.89905325444 + -9.16923076923 + -12.2209467456 + 5.53869822485 = $-18.8 Mil.
Total Current Assets was $433.5 Mil.
Total Assets was $1,524.5 Mil.
Property, Plant and Equipment(Net PPE) was $777.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $45.4 Mil.
Selling, General & Admin. Expense(SGA) was $119.3 Mil.
Total Current Liabilities was $574.1 Mil.
Long-Term Debt was $313.2 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(242.615502959 / 700.463786982) / (163.186390533 / 654.653254438)
=0.34636409 / 0.24927149
=1.3895

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(-0.474792899408 / 654.653254438) / (5.69715976331 / 700.463786982)
=-0.02864193 / 0.01682013
=-1.7028

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (528.681183432 + 995.938343195) / 1823.65171598) / (1 - (433.460473373 + 777.086863905) / 1524.52426036)
=0.1639744 / 0.20595076
=0.7962

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=700.463786982 / 654.653254438
=1.07

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(45.4156213018 / (45.4156213018 + 777.086863905)) / (50.5533727811 / (50.5533727811 + 995.938343195))
=0.05521639 / 0.04830748
=1.143

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(165.555857988 / 700.463786982) / (119.342366864 / 654.653254438)
=0.23635177 / 0.18229859
=1.2965

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((454.042721893 + 760.264615385) / 1823.65171598) / ((313.16 + 574.092189349) / 1524.52426036)
=0.66586582 / 0.58198627
=1.1441

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(-9.86698224852 - -5.7749112426 - 319.654674556) / 1823.65171598
=-0.1775

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Pampa Energia SA has a M-score of -4.48 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Pampa Energia SA Annual Data

Jun04Jun05Jun06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.49210.75121.15151.04981.15141.5563
GMI 1.0931.05941.21291.02693.4675-1.0266
AQI 1.08550.76410.81160.85742.40650.5969
SGI 2.71351.021.18881.3920.98830.7968
DEPI 0.50291.09211.00710.90240.96031.1461
SGAI 0.90881.13751.04041.25870.82051.7581
LVGI 1.0090.93341.12291.3190.98821.2517
TATA -0.0635-0.1047-0.0554-0.0547-0.1441-0.0778
M-score -1.68-3.24-2.44-2.54-1.12-3.94

Pampa Energia SA Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.81821.28471.15450.86931.36481.16951.55211.69771.6971.3895
GMI 1.37942.05253.62119.2589-8.7702-2.9446-0.9831-0.9433-3.0239-1.7028
AQI 2.12412.00112.40650.90210.68180.76010.59690.57160.86880.7962
SGI 1.14891.03070.98571.00210.88990.83150.7990.80920.9561.07
DEPI 0.52640.57180.76891.02671.50711.42911.43161.35921.11261.143
SGAI 1.14621.07770.82660.85411.10221.26771.72231.70271.39021.2965
LVGI 1.05661.04420.98821.14771.15581.2291.25171.28791.18741.1441
TATA -0.0863-0.0933-0.1513-0.1696-0.0616-0.0827-0.0787-0.0739-0.1414-0.1775
M-score -2.36-1.74-1.106.19-7.83-5.11-3.89-3.73-4.83-4.48
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